rdw4potus
rdw4potus
Joined: Mar 11, 2010
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January 16th, 2015 at 5:50:09 PM permalink
Quote: Deck007

No. There is no such thing as a 6-5 BJ here.

You cannot just change the HE from 4.5% to 6.5%.

Just like slot. You cannot just change the HE from 10% to 16%. Nobody will play.



Nobody will play? There's no competition...
"So as the clock ticked and the day passed, opportunity met preparation, and luck happened." - Maurice Clarett
Deck007
Deck007
Joined: Mar 3, 2014
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January 16th, 2015 at 5:55:28 PM permalink
repeat
Deck007
Deck007
Joined: Mar 3, 2014
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January 16th, 2015 at 5:56:45 PM permalink
Quote: Deck007

True to some extend. Singapore casinos and Thailand casinos are a short hop away by plane or road.

Dieter
Dieter
Joined: Jul 23, 2014
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January 16th, 2015 at 9:54:55 PM permalink
Quote: Deck007

I assume the tax is imposed/triggered at the buy-in time and refund of tax for the remaining chips will be excised when the player cash in their chips.



That's a tax on hold. Hold is the difference between buy in and cash out.

It makes no difference if you collect 6% tax on buy in and refund it on cash out, or if you apply it to the calculated hold (total buy-in for time period) - (total cash out for time period) - it's the same amount, and the same tax.

How it will affect the P&L: Assuming everything else stays the same, there should be a new line under taxes (which I think will say "hold tax") which will be 6% of the (documented) hold.
May the cards fall in your favor.
onenickelmiracle
onenickelmiracle
Joined: Jan 26, 2012
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January 16th, 2015 at 11:01:47 PM permalink
There tends to be confusion when the general public reads laws not knowing basic words are lingo. I'll assume this to be the case for somethin so obvious to cause instant bankruptcy if true.
In the land of the blind, the man with one eye is the care taker. Hold my beer.
sc15
sc15
Joined: Sep 28, 2014
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January 16th, 2015 at 11:39:40 PM permalink
Quote: Dieter

That's a tax on hold. Hold is the difference between buy in and cash out.

It makes no difference if you collect 6% tax on buy in and refund it on cash out, or if you apply it to the calculated hold (total buy-in for time period) - (total cash out for time period) - it's the same amount, and the same tax.

How it will affect the P&L: Assuming everything else stays the same, there should be a new line under taxes (which I think will say "hold tax") which will be 6% of the (documented) hold.



Or, as it's commonly referred to in the US, "gross gaming revenue" or "gross casino win"
Deck007
Deck007
Joined: Mar 3, 2014
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January 17th, 2015 at 1:01:51 AM permalink
I am trying to answer my own question by looking at say LVS. This is their third quarter 2014, P & L statement.



Las Vegas Sands Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

Three Months Ended
September 30,
------------
2014
------------

Revenues:
Casino $ 2,897,084
Rooms 386,867
Food and beverage 185,821
Mall 150,728
Convention, retail
and other 128,458
------------
3,748,958

Less - promotional
allowances (215,836)
------------
3,533,122
------------
Operating expenses:
Resort operations 2,256,479
Corporate 42,704
Pre-opening (2,414)
Development 3,043
amortization 251,002
Amortization of
leasehold
interests in land 10,086
Loss on disposal
of assets 801
------------
2,561,701
------------
Operating income 971,421
Other income
(expense):
Interest income 5,609
Interest expense,
net of amounts
capitalized (66,779)
Other income
(expense) 95
Loss on
modification or
early retirement
of debt (1,978)
------------
Income before income
taxes 908,368
Income tax expense (47,869)
------------
Net income 860,499



So if the 6% sales tax is imposed on 3,748,958 it will amount to 224,937

This will reduce the Net income from 860,499 to 639,562 i.e. a drop of 26%.

I'm I right. Review by some Experts here please.

26% drop is quite a hit. So how come Genting is quite sanguine about this.
sc15
sc15
Joined: Sep 28, 2014
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January 17th, 2015 at 1:11:47 AM permalink
Since you haven't provided a solid source including all the details of this new tax, I'm going to go with, you don't know all the details and what the real impact is, and that the assumptions being made here are wrong.
Deck007
Deck007
Joined: Mar 3, 2014
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January 17th, 2015 at 1:16:29 AM permalink
Quote: sc15

Since you haven't provided a solid source including all the details of this new tax, I'm going to go with, you don't know all the details and what the real impact is, and that the assumptions being made here are wrong.



Could you specify what are these "Assumptions"
Dieter
Dieter
Joined: Jul 23, 2014
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January 17th, 2015 at 1:24:39 AM permalink
Quote: Deck007

So if the 6% sales tax is imposed on 3,748,958 it will amount to 224,937



But that would be a tax on overall revenue, not gaming revenue. This is inconsistent with what you've previously presumed.

If it were on gaming revenue, it would be 2,897,084 / 173825.

Net income is 860,499 to 686674, drop of 20%.


Without knowing the specifics, we don't know if there are other taxes that get offset by this.... like income taxes, property taxes, etc.
May the cards fall in your favor.

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